Electronic Commerce: Risks of Implementation
Electronic Commerce: Risks of Implementation
Electronic Commerce (e-Commerce) and its related technologies are unquestionably the current leading-edge business and finance delivery systems for the 21st Century. The explosion in the application of technologies and the delivery of these technologies into the hands of consumers has made the vision, the dream, the fantasy, of conducting business electronically, anywhere in the global community, a reality. Electronic Commerce (EC) is no longer just a concept; it is a market force to be reckoned with. Let's discuss the risks of implementing E-com into your business.
Earlier Article: Electronic Commerce: Benefits on Implementation
Risks such as Fraud, customer disputes, chargebacks come in various shapes and forms, yet all of them are costly, time consuming and require constant attention. Risk exposure in a card-not-present environment is determined by the established business policies, operational practices, security controls, fraud detection and prevention tools and the types of products and services sold.
If your business is to be successful in minimizing fraud and chargebacks, your entire staff should clearly understand the risks associated with processing e-commerce transactions.
The risks associated with e-Commerce are multi-faceted. Given below is a sample listing of risks of e-Commerce:
Problem of anonymity
There is need to identify and authenticate users in the virtual global market where anyone can sell to or buy from anyone, anything from anywhere.
Repudiation of contract
There is possibility that the electronic transaction in the form of contract, sale order or purchase by the trading partner or customer may be denied.
Lack of authenticity of transactions
The electronic documents that are produced in the course of an e-Commerce transaction may not be authentic and reliable.
Data Loss or theft or duplication
The data transmitted over the Internet may be lost, duplicated, tampered with or replayed.
Attack from hackers
Web servers used for e-Commerce may be vulnerable to hackers.
Denial of Service
Service to customers may be denied due to non-availability of system as it may be affected by viruses, e-mail bombs and floods.
Non-recognition of electronic transactions
e-Commerce transactions, as electronic records and digital signatures may not be recognized as evidence in courts of law.
Lack of audit trails
Audit trails in e-Commerce system may be lacking and the logs may be incomplete, too voluminous or easily tampered with.
Problem of piracy
Intellectual property may not be adequately protected when such property is transacted through e-Commerce.
Well, that's all on the risks involved while implementing E-com into your business processes. We shall discuss the types of E-com in the coming article, stay tuned for that.
And if you have any doubts, queries or suggestions, please ask a question from the left panel of your screen.
Thank You
